A man who's been traveling for 10 years explains how to take luxury vacations on a shoestring budget

After quitting his job during a trip to Thailand in 2005 and
continuing on to travel the world for over 10 years, Matt Kepnes
— better known as Nomadic Matt — has learned how to travel on a budget while still taking
advantage of the unique places he visits.

For Kepnes, making the most of a small budget comes down to a
simple mantra: be frugal, not cheap.

"Pick and choose your battles," Kepnes told
Farnoosh Torabi on an episode of her "So Money" podcast. "You’re
probably not coming back to Australia anytime soon, so if you
really have always wanted to dive the Great Barrier Reef, dive
the Great Barrier Reef."

The key is prioritization. You're not going to be able to afford
every fancy dinner or extravagant activity, but you can afford a
few, so splurge on those and cut back elsewhere. Stay in a hostel, dial
back on drinks, cook a few extra meals at home.

"When I coach people on this, I always say, 'Cut everything. Live
like a monk or a nun or a hermit because when you’re over in
Brazil and you’re sailing down the Amazon, you will not care that
you spent two weeks inside your house cooking pasta and watching
Netflix,'" he explains.

Bottom line: Pick a few luxuries and splurge on what's most
important to you — the tradeoff is worth it.